Key facts
- Halfords has increased its profit targets due to strong summer trading.
- The company now anticipates a pre-tax profit between £55m and £65m for the year.
- Higher-than-expected sales in seasonal categories, partly due to warm weather, have boosted profits.
- The retailer will invest some of the increased earnings into technology and marketing.
- Halfords previously expected a pre-tax profit of £52.6m.
Halfords has raised its profit forecast, anticipating between £55m and £65m in pre-tax profit for the year, an increase from the previously projected £52.6m. The FTSE 250 company attributed the uplift to "very strong" recent sales, particularly in its summer ranges, which have benefited from unusually warm weather. Analysts at RBC Capital Markets suggested that the retailer's cycling, camping, and air conditioning offerings were key drivers of this performance. Halfords indicated that a portion of the additional earnings will be reinvested into its technology and marketing departments, suggesting that the first half of the fiscal year will account for a larger share of the full-year performance. The company's share price had been on a downward trend since 2021, but saw a significant increase in June after reporting a pre-tax profit that reversed a prior year's loss. RBC analysts expressed encouragement regarding the "early signs of progress" from Halfords' strategic plan, while acknowledging ongoing macroeconomic uncertainties.